By Jiahui Huang

NIO's net loss widened in the second quarter even as revenue rose, with both metrics missing analysts' expectations as the Chinese electric-vehicle maker faced intense competition during the period.

The Shanghai-based automaker said Tuesday that its second-quarter net loss was 5.14 billion yuan, equivalent to $720.8 million, widening from 5.13 billion yuan a year earlier. Revenue climbed 8.9% to 19.01 billion yuan in the three months ended June 30.

Analysts had expected a 4.96 billion yuan loss on revenue of 19.91 billion yuan, according to a Visible Alpha poll.

NIO's gross margin rose to 10.0% in the second quarter from 9.7% a year earlier, and improved from 7.6% in the first quarter. However, its vehicle margin fell to 10.3% from 12.2% a year earlier, mainly because of changes in the company's product mix, although that was partially offset by lower material costs per unit, the company said.

The downbeat results came as sales were sluggish in the second quarter. The company has yet to post a profitable quarter, but analysts are becoming more positive about its growth potential this year.

NIO posted record monthly sales on Monday, with deliveries in August jumping 55% to 31,305 units. The automaker said it delivered 10,575 units of the ONVO L90--the flagship electric sport-utility vehicle from NIO's mass-market brand--in the car's first month on the market, making it the company's fastest model to surpass the 10,000-unit sales mark.

"ONVO L90 and NIO All-New ES8 have received widespread user acclaim for their exceptional product experience, demonstrating our sharp market insights and precise product definition capabilities," Chief Executive William Bin Li said.

Citi analysts said in a recent note that they expect the company to break even in the fourth quarter, driven by strong volume momentum and cost controls. The company is considered one of the top three emerging EV brands in China, alongside XPeng and Li Auto.

For the current quarter, the EV maker said it expects deliveries to jump to 87,000-91,000 units, with revenue projected to rise 16.8%-22.5% to between 21.81 billion yuan and 22.88 billion yuan.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

September 02, 2025 06:09 ET (10:09 GMT)

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